16 March 2011 – result of rights issue
It is pleasing to report that over 85% of the shares offered in the recent rights issue were taken up. Given the small premium to the prevailing share price and the heavy nature of the issue (it was offered on the basis of 5 new shares for every 2 held), this was an excellent result. Although there may well be some short term consolidation in the share price, as 15% of the stock has been left with underwriters, at least the group should hopefully now have a base on which to build. SPECULATIVE BUY.